Luxweb Finance, le monde de la finance au Luxembourg

Glossary	Financial Newsletter
This glossary contains over 500 financial terms and definitions to help you get a better understanding of the world's financial markets. Select from the following menu to start navigating through the Luxweb Finance glossary.

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Call Option	Call Option Is the right but not the obligation to buy and asset for a specific price usually within a specific period. Although just on a specific date if it is a European style option.
Cap	Fixing a maximum dealing price. Bluffers point out that the opposite, a collar or minimum price, stops you risking your neck when dealing.
Capital Asset Pricing Model	A model used for valuing portfolios based upon market risk.
Capital Gains	The increase in the capital value of investments.
Capital Loss	A loss realised on the investment or an asset when it is sold.
Capitalisation Issue	Also known as a scrip issue, a bonus issue a free issue or a gratis issue. It is the issue of new fully paid shares in a company to existing shareholders for free an a basis pro-rata to existing holdings.
Capitalization	The total number of shares issued by a company multiplied by its share price i.e. the total value put on the company by the market. This can also be be applied to a market sector by adding the market caps of all the companies in the sector or, indeed, a market as a whole, by adding the market caps of all the stocks in that market.
Cash Dividends	When a cash payment is made to holders of stock as a share of the company's after tax profits.
Churning	A stockbroker advising his client to trade in order to generate commissions for a stockbroker regardless of the benefit to the portfolio is engaging in churning.
Circuit Breaker	A regulation used by the Stock Exchange to limit or delay trading because of sharp falls in the cash or futures markets.
Close Company	The legal definition of a closed company is one that is controlled by no more than five people who hold more than half the shares. A closed company must distribute a minimum percentage of profits as dividends. If it does not it will face tax penalties.
Conglomerate	A company that has many business activities and is not confined to one type or sector of business.
Consolidation	This is when a company proportionally increases the nominal value of each share whilst decreasing the number of shares in the issue.
Convertibles	Securities issued by a company to raise funds which can be converted at some point in the future into either preference or ordinary shares in that company.
Corporate Bond	A form of loan where companies issues bonds to raise the loan and pay interest on the bonds to holders. Usually bonds expire on a fixed date, when the company repays the loan.
Coupon	The fixed rate at which interest is paid on a bond.
Current Assets	The assets of a company that will be received as cash within a year.